REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Award of Contract to Graham Contractors, Inc. in the Amount of $146,315.02 for the Asphalt Replacement Project at Levi’s Stadium in Gold Lots 4 and 5 and Bill Walsh Way
Report
BACKGROUND
Pursuant to Section 2.9 of the Stadium Management Agreement between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company LLC (StadCo), and Forty Niners Stadium Management Company LLC (Stadium Manager), the Stadium Manager is responsible for maintaining Levi’s Stadium (Stadium) “in the Required Condition and operate it as a high-quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility…”
Due to the size, age, and complexity of Levi’s Stadium that requires ongoing capital investment, the Stadium Manager has identified the need to repair the parking lots in Gold Lots 4 and 5 along the south access road (Bill Walsh Way) by sealing existing cracks, applying slurry seal, and installing new striping to match the previous design/existing conditions at the Stadium.
On July 29, 2026, the Stadium Manager issued a Request for Bids (RFB) on the Stadium Manager’s eProcurement portal, Bonfire Interactive, to solicit qualified firms to repair Gold Lots 4 and 5 and Bill Walsh Way. The Stadium Manager also published the Notice Inviting Bids for the Project in the San Jose Mercury News and emailed multiple Builders’ Exchange Groups such as Builders’ Exchange of Santa Clara County, Bay Area Builders Exchange, Bid America, Builders Exchange of San Joaquin, Sacramento Regional Builders Exchange, San Francisco Builders Exchange, and Valley Builders Exchange to maximize the solicitation. Five (5) bids were received by the following firms on or before the RFB due date and time:
1. Pavement Coatings Co. - $470,049.23
2. VSS International, Inc. - $193,211.00
3. American Asphalt Repair & Resurfacing Co., Inc. - $167,506.00
4. Graham Contractors, Inc. - $146,315.02
5. Guerra Construction Group - $188,687.00
A public bid opening was held on September 1, 2026. The Stadium Manager announced the receipt of the five (5) bids on or before the due date and time, announced the name of the bidders and the total amount for each bidder and declared Graham Contractors, Inc. as the apparent lowest bidder. The Stadium Manager subsequently reviewed Graham Contractors, Inc.’s bid and determined that the company is the lowest responsive and responsible bidder. On September 2, 2026, the Stadium Manager issued a Notice of Intended Award and made it available to all the bidders.
The Stadium Manager requests that the Stadium Authority Board approve the award of a one-time construction contract to Graham Contractors, Inc. for the Gold Lots 4 and 5 and Bill Walsh Way Asphalt Repair Project at Levi’s Stadium. Accordingly, the Stadium Manager requests Stadium Authority Board approval of the following actions:
1. Approve and award a one-time contract to Graham Contractors, Inc. in the amount of $146,315.02 for the Gold Lots 4 and 5 and Bill Walsh Way Asphalt Repair Project at Levi’s Stadium (Project).
2. Authorize the Stadium Manager to execute change orders with Graham Contractors, Inc. of up to 25%, $36,578.76 for a total not-to-exceed amount of $182,893.78.
3. Authorize Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project.
A Recommendation for Award Memo was submitted by the Stadium Manager describing the services, solicitation process, and the request in more detail (Attachment 2).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award (RFA) memo and supporting documentation for consistency with the Stadium Authority Procurement Policy and the City’s public works bidding practices (City Charter Section 1310). As described above and in the Stadium Manager’s RFA memorandum, the Stadium Manager conducted an RFB process, received five bids, and recommends awarding a one-time contract to Graham Contractors, Inc., as the lowest responsive and responsible bidder.
The Stadium Manager recommends a one-time contract in the amount of $146,315.02, inclusive of applicable taxes. This amount reflects Graham Contractors, Inc.’s bid to repair pavement in Gold Lots 4 and 5 along the south access road (Bill Walsh Way). The work includes sealing existing cracks, applying slurry seal, and installing new striping to match the previous design/existing conditions at the Stadium.
The Stadium Manager is also requesting authorization to execute change orders with Graham Contractors, Inc of up to $36,578.76, for a total not-to-exceed amount of $182,893.78. The requested change-order authority would allow the Stadium Manager to incur other Project-related expenditures, such as those necessary to address weather-related delays.
The work is anticipated to occur during January and February, when El Niño conditions are expected to increase precipitation in the region. Weather-related cost impacts may include standby costs, remobilization expenses, and other related costs. Given the constrained timeline, the parking lots will be completely closed during paving, disrupting loading dock access. Any delays resulting from the need to obtain Board approval for additional change order authority could cause operational disruptions, including impacts on events, as well as increased remobilization costs. The higher contingency is intended to address both weather-related risks and the operational constraints associated with the constrained project schedule.
Based on the documentation provided, staff recommend approval of the requested contract agreement and delegation of authority to the Stadium Manager to issue change orders, subject to the total not-to-exceed amount.
The Stadium Authority Counsel’s Office has reviewed the Agreement for comparison to the Stadium Authority’s customary language. Nothing in the Agreement change the Stadium Authority’s rights under the Management Agreement and specifically with respect to any dispute that may arise from the Stadium Manager’s obligations under the Management Agreement.
The Stadium Authority reserves all rights to confirm and dispute charges by and payments to the Stadium Manager during a fiscal year-end reconciliation/true-up, including but not limited to changes based on improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law. The Stadium Authority may raise related questions before the fiscal year-end reconciliation/true-up, which the Stadium Manager agrees to assess and respond to in good faith.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of existing public or private facilities involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
The total one-time contract not-to-exceed amount is $182,893.78 inclusive of up to purchase change order not-to-exceed $36,578.76 for Project related expenditures.
The Stadium Authority Fiscal Year (FY) 2026/27 Adopted Budget includes Capital Expense (CapEx) project L1901: Asphalt which has a project budget of $206,587. There are currently sufficient funds in this project budget to cover the total not-to-exceed amount of $146,315.02 and the $36,578.76 contingency. The Stadium Authority is responsible for all CapEx Project costs.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel and Treasurer’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the Stadium Manager to execute the agreement with Graham Contractors, Inc. in the amount of $146,315.02 for the Asphalt Replacement Project at Levi’s Stadium;
2. Authorize Stadium Manager to execute change orders with Graham Contractors, Inc. not to exceed $36,578.76, representing 25% of the total contract price for a total not-to-exceed amount of $182,893.78; and
3. Authorize Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project.
Staff
Reviewed by: Kenn Lee, Acting Assistant City Manager / Chief Financial Officer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Draft Agreement with Graham Contractors
2. Stadium Manager’s Recommendation Memo